Buy Gold for Re 1: Paytm Launches Vertical Gold Sale
There aren’t many things that can be bought for a rupee, a candy maybe. But, what if you could buy gold with that rupee? Paytm, an online marketplace company backed by Alibaba, in partnership with Swiss company PAMP SA from MMTC, is making this possible in a first such initiative anywhere in the world. Paytm on Thursday announced the launch of ‘Digital Gold’, a vertical that allows its 200 million and more users to buy, store and sell gold instantly. Founder and CEO Vijay Shekhar Sharma called the new offering a wealth management product that would be part of his proposed payment bank, which was still awaiting the final green light from the Reserve Bank of India (RBI). “Customers can now buy and sell world-class gold at market-linked prices instantly for as little as Rs 1 using their Paytm wallets. If a user wants to sell the gold, MMTC-PAMP will buy back the gold and the silver will be transferred to their bank account, ”Sharma said. While purchased gold can be stored for free in MMTC-PAMP’s secure vaults, a consumer can also request home delivery of minted coins or resell it online instantly. Although the company did not specify this, it could also take out gold loans. He has learned to work already on the plane. Estimates suggest that gold worth $ 900 billion is stored in homes and bank lockers in India. Paytm, which is on a rapid expansion mode, is in talks for a new funding round that could materialize within the next three weeks. The company is seeking to raise around $ 1.5 billion from Japanese firm SoftBank, we learn. However, Sharma declined to comment on this. The company would need around Rs 10,000 crore of investments in banking and finance for more than three years, said Sharma.
The company also spent a lot of money while it was on the path to growth. In the fourth quarter of fiscal 2017, the company spent more than $ 105 million on various projects, including the expansion into Canada. Payment banks can accept deposits from individuals and small businesses up to Rs 1 lakh per account. To deepen financial inclusion in the country, the RBI had allowed small finance banks and payment banks to start services.